Weyerhaeuser Declares Special Dividend, Marks Milestone in Planned REIT Conversion
July 12, 2010 (Press Release) - Weyerhaeuser Company today announced the board of directors has declared a special dividend of $5.6 billion. This marks a major milestone in the company’s plan to convert to a real estate investment trust (REIT) by distributing its earnings and profits to shareholders.
The special dividend includes the regular quarterly dividend of approximately $11 million and is payable to shareholders of record as of July 22, 2010. Weyerhaeuser expects to pay the special dividend on Sept. 1, 2010.
Shareholders can elect stock or cash for the special dividend, with the total cash payment limited to 10 percent, or $560 million, of the total distribution. If cash elections exceed the approved amount, shareholders will receive a pro-rata amount of their distribution in cash and the remaining portion in stock.
“Today’s announcement represents the final major step in executing our plan to convert to a REIT,” said Dan Fulton, president and chief executive officer. “The REIT structure best supports our strategic direction and positions Weyerhaeuser for future growth. The tax efficiency of the REIT structure also will enable us to increase our timberland earnings and make higher distributions to our shareholders.”
A company makes a REIT election when it files the tax return for the effective year. Weyerhaeuser intends to make the REIT election when it files its 2010 tax return in 2011. The election would be effective beginning Jan. 1, 2010.
The company will file a prospectus later this week covering the securities that will be issued in the special dividend. The prospectus will contain a full description of the special dividend, including key dates.
SOURCE: Weyerhaeuser Company